Capricorn announce Full Year Results 2021
2021 Financial Highlights
- Year-end Group cash of US$314m; net cash of US$133m after debt drawn to fund the Egypt acquisition of US$181m
- Working interest Egypt oil and gas production of ~36,500 boepd, within guidance of 33,000-38,000 boepd; net entitlement production of 1.5mmboe
- Revenues from Egypt production of US$56m: average realised oil price of US$77.8/bbl and gas price of US$2.9/mcf (average production cost US$6.0/boe)
- Net cash generated from oil and gas production of US$185m
- Net Group capital expenditure of US$66m
- Operating loss of US$131m (2020 Restated: US$130m operating loss) from continuing operations
- Profit after tax of US$895m (2020: Loss of US$394m), including India tax refund
2022 Outlook
- Capital return of US$500m expected in Q2 2022 by way of tender offer to close in April, alongside ongoing share repurchase programme of up to US$200m, both subject to shareholder approval
- Capricorn WI production to average 37,000-43,000 boepd with 2022 exit rates forecast to exceed top end of guidance range
- Oil and condensate expected to comprise 35%-40% of production mix
- Production costs forecast to be US$4.5 – US$5.5 boe
- Current estimates of 2022 capital expenditure total approximately US$200m, including:
- Egypt production and development expenditure of US$90-110m targeted at delivering substantial production growth during 2022
- Egypt exploration expenditure of US$30-35m to sustain the resource base
- UK infrastructure-led exploration expenditure of ~US$40m, predominantly on the Jaws and Diadem wells, with no further well commitments beyond 2022
- Other international exploration of US$30-35m, principally in Mexico, with no further commitments beyond 2022 and any further investment contingent on farm-downs
Simon Thomson, Chief Executive, Capricorn Energy PLC said:
“2021 was a transformational year for Capricorn; we continued to successfully reshape our portfolio and achieved a positive resolution of our Indian tax dispute.
From the proceeds of asset sales and the Indian tax refund we have committed to nearly US$1 billion of capital returns to shareholders in 2021 and 2022. We acquired an attractive portfolio of low breakeven oil and gas production in Egypt, where we are already delivering production growth and emission reductions, and which has significant further opportunities for value creation. We also retain the balance sheet capacity to further expand the production base through value-accretive acquisitions.
We look forward to continuing to deliver our strategic aims in 2022 with a strong commitment to safety, social responsibility and our pathway to net zero carbon emissions by 2040.”
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